Super fund rejig hits thousands

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From next year, tens of thousands of working Australians will no
longer receive quarterly superannuation statements from their
employers after the Federal Government this week scrapped the
requirement just over a year after it was introduced.

Quarterly statements were introduced to help employees keep
track of their super payments, but met with opposition from small
businesses, which described it as costly and burdensome. Employees
will now have to wait for their annual statements from their super
funds to check that their full entitlements have been paid.

According to the Australian Tax Office, there is more than $7
billion sitting forgotten in super funds, and up to an estimated
$65 million in super entitlements that were simply not paid last
financial year.

The chief executive of the Association of Superannuation Funds
of Australia, Phillipa Smith, said at the time choice of fund was
being introduced, employees needed more information, not less.

"This move is aimed at making life easier for employers, and
small employers in particular, but reducing employees' rights and
information is certainly not the way to go," she said.

"While most employers try to do the right thing and pay super
contributions regularly, unfortunately there are employers who use
employee super entitlements for their own cash flow.

"This deprives employees of the interest earned, may place their
life insurance cover in jeopardy, and puts the money at risk if the
company goes belly up."

Workers at the now defunct Great Southern Woolshed in Ballarat
are still trying to recover an estimated $100,000 in unpaid
superannuation four years after the entertainment complex closed
its doors.

As part of its new pro-business focus following its election
loss, the Labor Party changed its position and voted for the
change.